Twitter sends "short" messages
15 September 2011 London
Image: Shutterstock
Derwent Capital Markets has launched a fund that invests based on twitter posts to gauge sentiment towards the stock market.
To test out the concept, Data Explorers spent a day tracking share focused tweets and then applied securities lending data. It seems to work.
"In short, US names almost exclusively make up the list, which was dominated by retailers and consumer services stocks – a trend we flagged in recent analysis assessing professional investor sentiment following the turmoil in August," writes Data Explorers.
Derwent Capital Markets is the first European social media-based hedge fund and uses real-time sentiment analysis to provide "what it hopes will be an invaluable insight into the “fear and greed” aspect within the financial markets".
To test out the concept, Data Explorers spent a day tracking share focused tweets and then applied securities lending data. It seems to work.
"In short, US names almost exclusively make up the list, which was dominated by retailers and consumer services stocks – a trend we flagged in recent analysis assessing professional investor sentiment following the turmoil in August," writes Data Explorers.
Derwent Capital Markets is the first European social media-based hedge fund and uses real-time sentiment analysis to provide "what it hopes will be an invaluable insight into the “fear and greed” aspect within the financial markets".
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